Policies and Procedures
Investment Policy
The Grand Island Public Schools Foundation, Board of Directors has a responsibility for the fiscal management of resources entrusted into its care. This includes, but is not limited to, management and investment of resources (over both short and long terms) to achieve the goals of the Foundation. The following investment goals, objectives, and strategies will be implemented to fulfill the responsibility of the Foundation Board.
The following are the stated investment goals of the Foundation.
1. To achieve a proper balance of investments between current investment income and future growth so as to:
A. Generate sufficient income to fund operations, scholarships and other goals;
B. Maintain future purchasing power of Foundation assets through capital growth
2. To structure assets so that the Foundation‘s investments portfolio will provide above average results (as compared to the S&P 500) in a variety of economic and market environments, as measured over meaningful periods of time.
The stated investment goals may be affected adversely by investment or market conditions over which the Board of Directors has no control.
Expectations and responsibilities of the Foundation
1. The Foundation shall establish a relationship with a professional money manager/financial advisor/financial services firm under the prudent professional standard, which shall be responsible for managing the Foundation’s resources under this investment policy and under the following, but not limited to, conditions.
a. Detailed monthly investment reports shall be mailed or otherwise delivered to the Foundation’s Executive Director.
b. Annually, or more often if the board deems advisable, the Foundation shall review the performance of the professional money manager/financial advisor /financial services firm and receive a report in person concerning the historical performance of the Foundation’s portfolio, general financial health, financial concerns, if any, and suggested strategies to achieve the Foundation’s stated goals.
c. Every ten years the Foundation shall conduct an evaluation and in-depth review of its relationship with the financial service firm. The purpose is to seek assurance that factors such as investment performance, cost, services and expertise are satisfactory for the Foundation’s goals. The review may include an examination of other financial service firms. The Foundation may seek Requests for Qualifications (RFQ)’s from area financial managers for the purpose of reviewing qualified money managers available and interested in working with the Foundation’s investments. At
the conclusion of the review the Board may elect to extend its relationship with the current financial service firm or establish a new relationship with another firm. This will be done by a 2/3 majority vote of its members.
d. Notwithstanding c, the Foundation may terminate its relationship with the money manager/financial advisor/financial services firm without cause at any time.
2. Large Gifts – Subject to Foundation Board approval, and on a case-by-case basis, gifts of $100,000 or more may be managed by a professional money manager/financial advisor/financial services firm other than the firm the Foundation has a current relationship with. Such firm would be subject to the all of the responsibilities, guidelines, asset allocations, and performance objectives in this policy. The Foundation reserves the right to terminate the relationship without cause at any time.
3. The Foundation’s resources shall be invested under the following guiding principles according to the prudent professional standard. The assets shall be primarily invested in “high quality stock and mutual funds (front-load only),” through a financially sound mix of domestic and international mutual funds consisting of
a. Stocks
b. Bonds
c. Cash
d. Real Estate, if applicable
4. In determining the overall asset allocation the Foundation will consider its cash flow levels and variability, projected liquidity needs, need for current income and long term objectives. The Foundation will have at least 30% but not more than 80% of its total assets allocated to equities.
5. Foundation assets may also be invested in FDIC – insured certificates of deposit or other secured bank deposits, which are satisfactory to the Foundation.
6. Donations made shall be liquidated at fair market value upon being entrusted into the professional money manager’s care and reinvested immediately into the Foundation’s portfolio.
7. Each year in January, after seeking the professional money manager’s recommendations, the Foundation Board will by 2/3 majority vote, declare a percentage of the restricted investments to be paid in scholarships awarded the following spring. The Foundation Board reserves the right to use dividends paid by funds to make up all or part of the percentage of restricted investments declared.
8. Additionally, each year in January, after seeking the professional money manager’s recommendations, the Foundation Board will by 2/3 majority vote, declare a percentage of the unrestricted investments to be paid for unrestricted foundation business.
9. Investment arrangements made by the Foundation prior to the adoption of this investment policy are hereby “grandfathered” in and are not subject to said policy. Such arrangements have been made for the Jack Martin Memorial Scholarship Fund and the Marshall Family Scholarship. If the donors of said funds are consulted, and do not object, their designated funds may become subject to this policy.
